FJ and SM Monaghan Pty Ltd v S and W Slade Pty Ltd (No 2)

The case before the court involved a dispute between FJ and SM Monaghan Pty Ltd (the plaintiff) and S and W Slade Pty Ltd (the first defendant) along with two other defendants (the second and third defendants). The plaintiff sought relief in respect of a claim related to a contract, while the defendants denied liability. The case was heard in the Supreme Court of New South Wales.

The central legal issue before the court was the determination of costs following the plaintiff's success against the first defendant. The court had to consider whether the other defendants had also enjoyed success, whether the substantive issues in dispute were severable from other issues, and whether a substantial amount of time was occupied by the issue on which the defendants succeeded. The court also had to address whether the separation of issues in the case offended the broad brush approach to costs, and whether such a separation was fair.

The court held that the separation of issues in the case did not offend the broad brush approach to costs. The underlying notion of fairness was considered, and the court found that the plaintiff was successful against the first defendant, and thus should be awarded costs on that claim. The court further held that the other defendants had not enjoyed sufficient success to warrant an order for costs against the plaintiff. Regarding the costs on the cross-claim, the cross-claimants were ordered to pay the costs of the cross-defendants. Finally, each party was ordered to pay their own costs on the costs argument.

The court made several orders, including that the first defendant pay the plaintiff's costs of the proceedings on the plaintiff's claim, that the plaintiff pay 20% of the costs of the second and third defendants' costs on the plaintiff's claim, that the cross-claimants pay the cross-defendants' costs on the cross-claim, and that each party pay their own costs on the costs argument.